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V2776-23 10 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos de actividades económicas

30% reduction for income generated over two years is not applicable if not imputed in a single tax period

A lawyer inquired whether the 30% reduction for income from economic activities obtained over a period exceeding two years could be applied to variable fees. The Directorate General for Taxes (DGT) ruled that it is not applicable as all legal requirements have not been met.

The question raised

Application of the 30% reduction under Article 32.1 of Law 35/2006 to the fees received for the aforementioned assignment.

The DGT's ruling

The 30% reduction under Article 32.1 of the Personal Income Tax Law (LIRPF) is not applicable. Although the judicial process lasted more than two years, the requirement to attribute the income to a single tax period is not met, as a fixed portion of the fees was attributed to a different period. Furthermore, the fees do not qualify as income obtained in a notoriously irregular manner according to the Tax Regulations.

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